Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 52886-52887 [E9-24732]

Download as PDF 52886 Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Rules and Regulations PENSION BENEFIT GUARANTY CORPORATION 29 CFR Part 4022 Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions for Valuing and Paying Benefits AGENCY: Pension Benefit Guaranty Corporation. ACTION: Final rule. SUMMARY: Pension Benefit Guaranty Corporation’s regulation on Benefits Payable in Terminated Single-Employer Plans prescribes interest assumptions for valuing and paying certain benefits under terminating single-employer plans. This final rule amends the benefit payments regulation to adopt interest assumptions for plans with valuation dates in November 2009. Interest assumptions are also published on PBGC’s Web site (https://www.pbgc.gov). DATES: Effective November 1, 2009. FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Manager, Regulatory and Policy Division, Legislative and Regulatory Department, Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005, 202–326– 4024. (TTY/TDD users may call the Federal relay service toll-free at 1–800– 877–8339 and ask to be connected to 202–326–4024.) SUPPLEMENTARY INFORMATION: PBGC’s regulations prescribe actuarial assumptions—including interest assumptions—for valuing and paying plan benefits of terminating singleemployer plans covered by title IV of the Employee Retirement Income Security Act of 1974. The interest assumptions are intended to reflect current conditions in the financial and annuity markets. These interest assumptions are found in two PBGC regulations: the regulation on Benefits Payable in Terminated Single-Employer Plans (29 CFR part Rate set For plans with a valuation date On or after * 193 * 11–1–09 3. In appendix C to part 4022, Rate Set 193, as set forth below, is added to the table. 16:27 Oct 14, 2009 Jkt 220001 List of Subjects in 29 CFR Part 4022 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. ■ In consideration of the foregoing, 29 CFR part 4022 is amended as follows: PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE–EMPLOYER PLANS 1. The authority citation for part 4022 continues to read as follows: ■ Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344. 2. In appendix B to part 4022, Rate Set 193, as set forth below, is added to the table. ■ APPENDIX B TO PART 4022—LUMP SUM INTEREST RATES FOR PBGC PAYMENTS * * i2 * 4.00 2.25 * PO 00000 * * Frm 00020 * 4.00 i3 * * * Fmt 4700 * Sfmt 4700 n1 * 4.00 APPENDIX C TO PART 4022—LUMP SUM INTEREST RATES FOR PRIVATE-SECTOR PAYMENTS * VerDate Nov<24>2008 i1 * 12–1–09 PBGC has determined that notice and public comment on this amendment are impracticable and contrary to the public interest. This finding is based on the need to determine and issue new interest assumptions promptly so that the assumptions can reflect current market conditions as accurately as possible. Because of the need to provide immediate guidance for the valuation and payment of benefits in plans with valuation dates during November 2009, PBGC finds that good cause exists for making the assumptions set forth in this amendment effective less than 30 days after publication. PBGC has determined that this action is not a ‘‘significant regulatory action’’ under the criteria set forth in Executive Order 12866. Because no general notice of proposed rulemaking is required for this amendment, the Regulatory Flexibility Act of 1980 does not apply. See 5 U.S.C. 601(2). Deferred annuities (percent) Immediate annuity rate (percent) Before ■ jlentini on DSKJ8SOYB1PROD with RULES 4022) and the regulation on Allocation of Assets in Single-Employer Plans (29 CFR part 4044). Assumptions under the asset allocation regulation are updated quarterly; assumptions under the benefit payments regulation are updated monthly. This final rule updates only the assumptions under the benefit payments regulation. Two sets of interest assumptions are prescribed under the benefit payments regulation: (1) A set for PBGC to use to determine whether a benefit is payable as a lump sum and to determine lumpsum amounts to be paid by PBGC (found in Appendix B to Part 4022), and (2) a set for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using PBGC’s historical methodology (found in Appendix C to Part 4022). This amendment (1) adds to Appendix B to Part 4022 the interest assumptions for PBGC to use for its own lump-sum payments in plans with valuation dates during November 2009, and (2) adds to Appendix C to Part 4022 the interest assumptions for privatesector pension practitioners to refer to if they wish to use lump-sum interest rates determined using PBGC’s historical methodology for valuation dates during November 2009. The interest assumptions that PBGC will use for its own lump-sum payments (set forth in Appendix B to part 4022) will be 2.25 percent for the period during which a benefit is in pay status and 4.00 percent during any years preceding the benefit’s placement in pay status. In comparison with the interest assumptions in effect for October 2009, these interest assumptions represent a decrease of 0.25 percent in the immediate annuity rate and are otherwise unchanged. For private-sector payments, the interest assumptions (set forth in Appendix C to part 4022) will be the same as those used by PBGC for determining and paying lump sums (set forth in Appendix B to part 4022). E:\FR\FM\15OCR1.SGM 15OCR1 n2 * 7 8 52887 Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Rules and Regulations For plans with a valuation date Rate set On or after * Before * 193 * 11–1–09 12–1–09 Issued in Washington, DC, on this 6th day of October 2009. Vincent K. Snowbarger, Acting Director, Pension Benefit Guaranty Corporation. [FR Doc. E9–24732 Filed 10–14–09; 8:45 am] BILLING CODE 7709–01–P Coast Guard 33 CFR Part 117 [Docket No. USCG–2009–0348] RIN 1625–AA09 Drawbridge Operation Regulation; East River, New York City, NY Coast Guard, DHS. Temporary final rule. AGENCY: The Coast Guard has temporarily changed the drawbridge operating regulations governing the operation of the Roosevelt Island Bridge, mile 6.4, across the East River at New York City, New York. This temporary final rule allows the Roosevelt Island Bridge to remain in the closed position for eleven months to facilitate a major rehabilitation of the bridge. DATES: This rule is effective October 15, 2009 through August 31, 2010. ADDRESSES: Comments and related materials received from the public, as well as documents mentioned in this preamble as being available in the docket, are part of docket USCG–2009– 0348 and are available online by going to https://www.regulations.gov, inserting USCG–2009–0348 in the ‘‘Keyword’’ box, and then clicking ‘‘Search.’’ This material is also available for inspection or copying at the Docket Management Facility (M–30), U.S. Department of Transportation, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: If you have questions on this temporary rule, call or e-mail Mr. Joe Arca, Project Officer, First Coast Guard District Bridge Branch, 212–668–7165, jlentini on DSKJ8SOYB1PROD with RULES SUMMARY: VerDate Nov<24>2008 16:27 Oct 14, 2009 2.25 i1 i2 * 4.00 i3 4.00 * joe.m.arca@uscg.mil. If you have questions on viewing the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone 202–366– 9826. SUPPLEMENTARY INFORMATION: Regulatory Information DEPARTMENT OF HOMELAND SECURITY ACTION: Deferred annuities (percent) Immediate annuity rate (percent) Jkt 220001 On August 13, 2009, we published a notice of proposed rulemaking (NPRM) entitled Drawbridge Operation Regulation; East River, New York City, NY, in the Federal Register (74 FR 40802). We received no comments on the proposed rule. No public meeting was requested, and none was held. Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective in less than 30 days after publication in the Federal Register. A delay or cancellation of this ongoing bridge rehabilitation project is not in the public interest and would further disrupt the flow of vehicular and maritime traffic. The rehabilitation project is necessary to ensure the continued safe and reliable operation of the bridge. Background and Purpose The Roosevelt Island Bridge has a vertical clearance of 40 feet at mean high water, and 47 feet at mean low water in the closed position. The existing drawbridge operating regulations listed at 33 CFR 117.781, require the bridge to open on signal if at least a two hour advance notice is given. The bridge owner, New York City Department of Transportation, has requested a temporary rule to facilitate electrical and mechanical rehabilitation at the Roosevelt Island Bridge. Under this temporary final rule the Roosevelt Island Bridge will remain in the closed position from October 1, 2009 through August 31, 2010. Vessel traffic may transit the East River utilizing the alternate route around the other side of the island. Discussion of Comments and Changes The Coast Guard received no comment letters in response to the notice of proposed rulemaking. As a result, no changes have been made to this temporary final rule. PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 n1 * 4.00 n2 * 7 8 Regulatory Analyses We developed this rule after considering numerous statutes and executive orders related to rulemaking. Below we summarize our analyses based on 13 of these statutes or executive orders. Regulatory Planning and Review This rule is not a significant regulatory action under section 3(f) of Executive Order 12866, Regulatory Planning and Review, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that Order. The Office of Management and Budget has not reviewed it under that Order. This conclusion is based upon the fact that vessel traffic will still be able to transit the East River using the alternate route around the island. Small Entities Under the Regulatory Flexibility Act (5 U.S.C. 601–612), we have considered whether this rule would have a significant economic impact on a substantial number of small entities. The term ‘‘small entities’’ comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities. This conclusion is based upon the fact that vessel traffic will still be able to transit the East River using the alternate route round the island. Assistance for Small Entities Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104–121), in the NPRM we offered to assist small entities in understanding the rule so that they could better evaluate its effects on them and participate in the rulemaking process. Collection of Information This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501– 3520). E:\FR\FM\15OCR1.SGM 15OCR1

Agencies

[Federal Register Volume 74, Number 198 (Thursday, October 15, 2009)]
[Rules and Regulations]
[Pages 52886-52887]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-24732]



[[Page 52886]]

=======================================================================
-----------------------------------------------------------------------

PENSION BENEFIT GUARANTY CORPORATION

29 CFR Part 4022


Benefits Payable in Terminated Single-Employer Plans; Interest 
Assumptions for Valuing and Paying Benefits

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: Pension Benefit Guaranty Corporation's regulation on Benefits 
Payable in Terminated Single-Employer Plans prescribes interest 
assumptions for valuing and paying certain benefits under terminating 
single-employer plans. This final rule amends the benefit payments 
regulation to adopt interest assumptions for plans with valuation dates 
in November 2009. Interest assumptions are also published on PBGC's Web 
site (https://www.pbgc.gov).

DATES: Effective November 1, 2009.

FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Manager, 
Regulatory and Policy Division, Legislative and Regulatory Department, 
Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, 
DC 20005, 202-326-4024. (TTY/TDD users may call the Federal relay 
service toll-free at 1-800-877-8339 and ask to be connected to 202-326-
4024.)

SUPPLEMENTARY INFORMATION: PBGC's regulations prescribe actuarial 
assumptions--including interest assumptions--for valuing and paying 
plan benefits of terminating single-employer plans covered by title IV 
of the Employee Retirement Income Security Act of 1974. The interest 
assumptions are intended to reflect current conditions in the financial 
and annuity markets.
    These interest assumptions are found in two PBGC regulations: the 
regulation on Benefits Payable in Terminated Single-Employer Plans (29 
CFR part 4022) and the regulation on Allocation of Assets in Single-
Employer Plans (29 CFR part 4044). Assumptions under the asset 
allocation regulation are updated quarterly; assumptions under the 
benefit payments regulation are updated monthly. This final rule 
updates only the assumptions under the benefit payments regulation.
    Two sets of interest assumptions are prescribed under the benefit 
payments regulation: (1) A set for PBGC to use to determine whether a 
benefit is payable as a lump sum and to determine lump-sum amounts to 
be paid by PBGC (found in Appendix B to Part 4022), and (2) a set for 
private-sector pension practitioners to refer to if they wish to use 
lump-sum interest rates determined using PBGC's historical methodology 
(found in Appendix C to Part 4022).
    This amendment (1) adds to Appendix B to Part 4022 the interest 
assumptions for PBGC to use for its own lump-sum payments in plans with 
valuation dates during November 2009, and (2) adds to Appendix C to 
Part 4022 the interest assumptions for private-sector pension 
practitioners to refer to if they wish to use lump-sum interest rates 
determined using PBGC's historical methodology for valuation dates 
during November 2009.
    The interest assumptions that PBGC will use for its own lump-sum 
payments (set forth in Appendix B to part 4022) will be 2.25 percent 
for the period during which a benefit is in pay status and 4.00 percent 
during any years preceding the benefit's placement in pay status. In 
comparison with the interest assumptions in effect for October 2009, 
these interest assumptions represent a decrease of 0.25 percent in the 
immediate annuity rate and are otherwise unchanged. For private-sector 
payments, the interest assumptions (set forth in Appendix C to part 
4022) will be the same as those used by PBGC for determining and paying 
lump sums (set forth in Appendix B to part 4022).
    PBGC has determined that notice and public comment on this 
amendment are impracticable and contrary to the public interest. This 
finding is based on the need to determine and issue new interest 
assumptions promptly so that the assumptions can reflect current market 
conditions as accurately as possible.
    Because of the need to provide immediate guidance for the valuation 
and payment of benefits in plans with valuation dates during November 
2009, PBGC finds that good cause exists for making the assumptions set 
forth in this amendment effective less than 30 days after publication.
    PBGC has determined that this action is not a ``significant 
regulatory action'' under the criteria set forth in Executive Order 
12866.
    Because no general notice of proposed rulemaking is required for 
this amendment, the Regulatory Flexibility Act of 1980 does not apply. 
See 5 U.S.C. 601(2).

List of Subjects in 29 CFR Part 4022

    Employee benefit plans, Pension insurance, Pensions, Reporting and 
recordkeeping requirements.

0
In consideration of the foregoing, 29 CFR part 4022 is amended as 
follows:

PART 4022--BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS

0
1. The authority citation for part 4022 continues to read as follows:

    Authority:  29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 
1344.
0
2. In appendix B to part 4022, Rate Set 193, as set forth below, is 
added to the table.

APPENDIX B TO PART 4022--LUMP SUM INTEREST RATES FOR PBGC PAYMENTS

* * * * *

--------------------------------------------------------------------------------------------------------------------------------------------------------
                  For plans with a  valuation date     Immediate                                 Deferred annuities (percent)
    Rate set     ----------------------------------   annuity rate  ------------------------------------------------------------------------------------
                    On or after         Before         (percent)            i1               i2               i3               n1               n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          193           11-1-09          12-1-09             2.25             4.00             4.00             4.00                7                8
--------------------------------------------------------------------------------------------------------------------------------------------------------

0
3. In appendix C to part 4022, Rate Set 193, as set forth below, is 
added to the table.

APPENDIX C TO PART 4022--LUMP SUM INTEREST RATES FOR PRIVATE-SECTOR 
PAYMENTS

* * * * *

[[Page 52887]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                  For plans with a  valuation date     Immediate                                 Deferred annuities (percent)
    Rate set     ----------------------------------   annuity rate  ------------------------------------------------------------------------------------
                    On or after         Before         (percent)            i1               i2               i3               n1               n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          193           11-1-09          12-1-09             2.25             4.00             4.00             4.00                7                8
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC, on this 6th day of October 2009.
Vincent K. Snowbarger,
Acting Director, Pension Benefit Guaranty Corporation.
[FR Doc. E9-24732 Filed 10-14-09; 8:45 am]
BILLING CODE 7709-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.